Global markets are anticipating an exceptional week filled with sensitive economic data, which will reshape the trading of major currencies, most notably the US dollar, the Swiss franc, the Australian dollar, and the Canadian dollar.
As the Federal Reserve's decisions approach, forex volatility increases, and investors focus more intently on every number that might hold a surprise that could change the direction of the markets in the coming days.
Key data opens on Wednesday with the release of the Australian growth reading, which is expected to register 0.7% for the third quarter.
A higher-than-expected reading could give the Australian dollar a strong boost against major currencies, while weakness would increase pressure and reinforce expectations of central bank intervention.
Markets are also awaiting Swiss inflation data, which is expected to show a contraction of 0.2%.
Higher figures will support the franc as a safe-haven currency, while weak data could push it lower against the dollar and other major currencies.
US private sector employment data could be key to a clearer view of the Fed's next decision.
Only 19,000 jobs are expected to be added, and any positive surprise will support the dollar, while weakness may reinforce expectations of an interest rate cut.
Forecasts indicate a loss of 8,000 jobs and a rise in unemployment to 7%, which could increase pressure on the Canadian dollar if the data comes in negative.
A positive reading, however, could keep the Bank of Canada in a more hawkish position.
This data is released on Friday and is the Federal Reserve's most reliable indicator for measuring inflation.
A reading above 0.2% would strengthen the dollar and mean interest rates will remain high, while a lower reading could lead to a decline in the dollar as bets on an interest rate cut soon increase.
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